Albania is a small country in South Eastern Europe, bordered by the Adriatic Sea to the west, Greece to the south, Macedonia and Montenegro to the southeast, and Kosovo to the northeast. With less than 2 million people, it isn’t a big country. However, given its size and other limitations that are common for smaller countries such as limited resources and market access, Albania is at an advantage when it comes to business process outsourcing (BPO). Here we look at five reasons why BPO in Albania is a great decision.
Albania is a Stable ECOMOMIC Environment
As we mentioned before, a small country is often lacking in market access and resources, which can be a challenge for BPO companies. However, in Albania’s case, it’s more of an advantage because the country has a stable economy. Albania’s gross domestic product is growing, making it a stable environment for business. Aside from this, there are also no currency restrictions, which means that a BPO company can easily exchange money from one currency to another.
Albania has a Low Cost of Labor
BPO companies will often look for a country with a low cost of labor. Albania’s low cost of labor makes it a very attractive country for BPO companies. A BPO company in Albania will find it very easy to attract talent and retain employees, because the cost of living is low. This means that employees can make a decent living while spending less. Although the cost of living may vary depending on the city, overall, it’s still one of the lowest in Europe. Another advantage is that the country does not have taxes on personal income or on dividends, making the cost of doing business even lower.
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Albania has a skilled workforce
Albania was a Communist country until 1991, and its transition to a free-market economy was not smooth. After the fall of communism, it faced a lot of social and economic issues, including a large-scale emigration of people looking for work in other countries. However, this became a blessing in disguise for investors. The government took advantage of the situation and attracted businesses to set up operations in the country by offering incentives to companies that would hire locals. This created a workforce with the right skills and expertise needed for BPO. BPO companies can expect to hire a skilled and talented workforce in Albania, making it easier to set up operations and train employees. A BPO company can expect to find a workforce that is proficient in English language, which can be a challenge for other countries. In addition, Albanian employees also have a strong work ethic and are very disciplined.
Good Connectivity in Albania
Albania has good connectivity. The country has an excellent road and rail network, which is important for transportation of goods and travel related to BPO. It also has two international airports and two seaports, which makes it easier for BPO companies to ship goods, and for employees to travel. The country does not suffer from natural disasters or climate-related issues, which makes it an ideal place for BPO. However, there is one major drawback in this, as internet connectivity can be a problem at times when there are heavy rains or snowfall. There have been instances of this happening, and it has caused disruption in internet connectivity.
There are tax benefits for BPO and Software Development Company
If the BPO or software development company is managed and owned by a foreign company, then the profits could be taxed at a rate of 10%. However, if the company is owned by Albanian citizens, then the profits will be taxed at a rate of 15%. There are certain conditions for companies to enjoy tax benefits, including creating jobs for a certain number of employees, and meeting certain other requirements. If a BPO company meets the conditions and is operating in Albania, then it can enjoy a tax rate of 10%, which is lower than the tax rate for most developed countries.
Final Words: Wrapping up
We have looked at five reasons why Albania is the best choice for BPO. First, Albania has a stable economic environment. Second, Albania has a low cost of labor. Third, Albania has a skilled workforce. Fourth, the country has good connectivity. And lastly, there are tax benefits for BPO companies. However, it’s important to note that BPO is a very competitive industry. It is crucial for BPO companies to choose the right country where they can get the best return on their investment, while also having a positive impact on the local economy. For companies looking to set up operations in an attractive country like Albania, it is important to choose the right partner with the right experience.